Rising Chinese Inflation Pushes Gold Higher

Gold Silver GLD IAU SLVGold gained in Tuesday trading after the Chinese government reported that its consumer price index for June rose 2.7% compared to last year.

Economists had been expecting a rise of 2.5%, so the CPI surprise fueled a move into gold. (Higher inflation increases gold’s value as a safe haven asset.) Asian gold demand has been strengthening in recent months.

Gold futures for August delivery advanced 0.9% to $1,245.90 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,258.70 and as low as $1,232. Gold bullion closed in London at $1,250, according to BullionVault.

Silver futures for August delivery increased 0.5% to $19.13 per ounce. Tuesday’s high for silver was $19.44 while the low was $19.06.

Gold and silver funds rose in Tuesday trading.

  • The SPDR Gold Trust (GLD) gained 0.9%.
  • The iShares Gold Trust (IAU) added 0.8%.
  • The iShares Silver Trust (SLV) also increased 0.8%.

Gold and silver mining ETFs improved during the day.

  • The Market Vectors Gold Miners ETF (GDX) climbed 1.4%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) advanced 2.7%.
  • The Global X Silver Miners ETF (SIL) rose 1.9%.

Gold mining shares were mixed on Tuesday.

  • Agnico-Eagle Mines (AEM) dipped 0.8%.
  • Barrick Gold (ABX) gained 0.9%.
  • Eldorado Gold (EGO) rose 2.7%.
  • Goldcorp (GG) climbed 2.5%.
  • Kinross Gold (KGC) slipped 0.4%.
  • Newmont Mining (NEM) edged up 0.2%.
  • NovaGold Resources (NG) fell 0.5%.
  • Yamana Gold (AUY) dropped 0.2%.

Silver mining shares were mostly higher during the day.

  • Coeur d’Alene Mines (CDE) sank 0.6%.
  • Hecla Mining (HL) rose 0.4%.
  • Pan American Silver (PAAS) surged 3.5%.
  • Silver Wheaton (SLW) climbed 2.7%.
  • Silver Standard Resources (SSRI) also gained 2.7%.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.


Article printed from InvestorPlace Media, https://investorplace.com/2013/07/rising-chinese-inflation-pushes-gold-higher/.

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